Epic bread Fail

So we have gone on a budget, and really the main part of that budget that needed to be addressed was our food budget. So to combat that, we have been making more meals at home, and I grabbed my parents old bread maker that they don't ever use. Okay the fresh bread is not really to save money, but that I just really like the smell and taste of it.
This was my second try, my first was a short dense loaf that was pretty tasty. So I did a little research on the internet, and found that there might have been a couple problems. One I thought my yeast was bad, and did not rise, but after the second loaf. It was saying that I might have had too much water in the mixture. This makes the epic crater in the loaf like I have in the picture. Again I did eat the loaf, wasn't that bad, and I hate wasting food. And if I had too much water the first time, people said that it could fall and back dense too. So I am cutting down the water for try 3.